The ECB will reduce its purchases on the markets

European Central Bank (ECB) President Christine Lagarde at the Governing Council's monetary policy meeting in Frankfurt, September 9, 2021. REUTERS - KAI PFAFFENBACH

Text by: RFI Follow

2 min

The European Central Bank (ECB) is slightly reducing its main support to the euro area economy in the face of the pandemic.

However, the Frankfurt institution is staying the course of its accommodating monetary policy at a time when the European economy is recovering.

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This drop in pace, presented as a moderate slowdown, should result in a lower volume of public and private debt buybacks in the coming months.

60 to 70 billion euros, instead of 80 billion currently.

This decision was widely awaited by the markets which have gone green. 

On the other hand, the institution leaves on their hunger those who hoped for clues on a possible strategy of normalization of monetary policy while the economy is improving. 

The

recovery

is there.

Economic activity in the euro zone should even exceed its pre-pandemic level by the end of the year.

But we are not there yet, hammered Christine Lagarde.

The eurozone economy is clearly on the rebound.

It is expected to surpass its pre-pandemic level by the end of the year.

With more than 70% of adult Europeans fully vaccinated, the economy has been opened up allowing consumers to spend more and businesses to increase production.

The Governing Council believes that favorable financing conditions can be maintained, but with a slightly slower pace of net asset purchases under the emergency program.

The Council stands ready to adjust all of its instruments adequately to ensure that inflation stabilizes at the level of the 2% target.

Christine Lagarde, President of the European Central Bank (ECB)

Agnieszka Kumor

The inflation target remains set at 2%.

The boss of the ECB is convinced that the current price increase will be temporary.

But if the pressure on prices becomes more persistent, the ECB is ready to adjust all of its instruments.

See you in December to discuss a possible withdrawal from this accommodating monetary policy. 

► To listen and read also: The ECB will undoubtedly maintain its massive plan to support the economy [Today the economy]

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• Eurozone

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• European Union

• Christine Lagarde